Security deposits
SSE Energy Solutions may ask you to pay a security deposit. When you close or transfer your account, you’ll receive your security deposit refund, with any accrued interest added.
This page explains why this is necessary and should answer any questions you have. If your query isn’t covered, please contact us by:
Phone: 0345 725 2526
What is a security deposit and why has it been requested?
SSE Energy Solutions credit checks all new and renewing business customers. Depending on the outcome, we may ask you to pay a security deposit. We purchase your energy in advance of you using it, so it’s important we understand the creditworthiness of our customers.
What if we decide to leave SSE?
If all invoices have been paid at the point when you leave SSE Energy Solutions, we’ll refund your deposit and any interest accrued. If there are any outstanding invoices, the deposit will be used to clear these first.
How long do you hold my security deposit?
We typically hold the security deposits for a minimum of 12 months or until your credit rating has improved. The decision is at our sole discretion.
Will this money be held in an escrow account?
No, the monies we receive as security are held in a separate SSE Energy Solutions holding account, and not a third-party trust.
Will we earn interest on monies paid?
Yes, interest will be paid at the current base rate (gross, subject to tax), which will be added to your account at the end of the financial year (April) and/or the end of the contract period.
We’ll also review the rate every three months and guarantee that the minimum interest we pay you will match the Bank of England base rate.
A statement will be issued at the end of each financial year, advising of any interest accrued. We only apply interest on an annual basis.
Why is this not on a VAT invoice?
Security deposits are outside the scope of VAT. The deposit is held on account and not used for a service or sale, so VAT isn’t charged. If the deposit is used against an outstanding debt at a later date, then the VAT would be calculated on the bill in which the money was owed.
Who has access to this account?
Only SSE Energy Solutions has access. We would only call on these monies in the event of a non-payment of final invoices or business failure.